- More than 400 million customers used Alexa for Shopping in the past 12 months, up from 350 million in July
- Users of the AI assistant spend 50 per cent more than customers who do not use it, according to Amazon CEO Andy Jassy
- Amazon is adding more than 100 features while restricting access to external AI shopping agents such as Meta's Muse
Amazon is stepping up its investment in AI-powered shopping after revealing that more than 400 million customers have used its conversational shopping assistant, Alexa for Shopping, over the past year.
The figure, disclosed by chief executive Andy Jassy during the company's third-quarter earnings call on Thursday (29), represents an increase from 350 million users at the end of July.
Jassy also said customers using Alexa for Shopping spend 50 per cent more than those who do not use the assistant, highlighting the commercial potential of artificial intelligence as Amazon looks for new ways to increase sales and customer engagement.
The numbers come as Amazon reported third-quarter net sales of $201.9bn, up 12 per cent year over year. Amazon Web Services (AWS) was a major contributor, with segment sales rising 39 per cent.
However, growth across several of its retail-related businesses was slower. Online Stores revenue increased just two per cent, while third-party seller services and advertising services grew nine per cent and 11 per cent respectively.
The company said comparisons were affected by the timing of Prime Day, which took place in June this year rather than July. As a result, much of the event's sales growth was recorded in the second quarter, whereas it fell in the third quarter last year.
Against this backdrop, AI shopping is emerging as an important way for Amazon to encourage customers to discover products, receive recommendations and complete purchases within its own ecosystem.
Amazon expands Alexa as AI shopping competition grows
Amazon introduced its AI shopping assistant in 2024 under the name Rufus before rebranding it as Alexa for Shopping in May 2026. The change brought the shopping assistant under the Alexa name, which customers were already familiar with through Amazon's voice-enabled devices.
The company has since expanded its presence across its website and app, adding features designed to make shopping more conversational and personalised.
On Thursday, Amazon announced more than 100 new capabilities ahead of the holiday shopping season. These include creating and editing gift lists and registries through natural-language requests, as well as managing Subscribe and Save services. Customers can use the assistant to pause or cancel certain subscriptions.
The expansion comes as Amazon faces competition from AI shopping agents developed by other technology companies.
The company has blocked Meta's Muse assistant from accessing its online store, arguing that the service violated the terms of use accepted by customers. It has also restricted access by some ChatGPT web crawlers.
The concern for Amazon is that external shopping agents could change how customers discover products and make purchases. If shoppers rely on third-party assistants instead of visiting Amazon's website or app, the retailer could lose control over product recommendations, customer interactions and the advertising opportunities that generate revenue.
Jassy said the experience offered by external shopping agents was not yet as convenient as going directly to a retailer.
He did, however, indicate that Amazon expected to work with external AI platforms in the future. The company's preference remains clear: it wants Alexa for Shopping to become the primary assistant customers use when shopping on Amazon.
“Though we anticipate working with horizontal agents, we believe Alexa for Shopping is going to be the primary shopping agent customers use to shop Amazon,” Jassy said.
Meta's Muse adds pressure on Amazon
Meta is also expanding its ambitions in AI-powered shopping through Muse, its personal AI assistant launched in September.
Meta CEO Mark Zuckerberg said more than 10 million people in the US and Canada had set up the assistant since its release. Shopping has emerged as one of its most popular uses, with more than a quarter of users engaging with shopping features, according to Zuckerberg.
He also said the average purchase size associated with the assistant exceeded $200.
Muse can connect with calendars, emails and other phone functions to carry out tasks on behalf of users, reflecting a wider shift towards AI agents that can move beyond answering questions to completing activities.
Meta has secured partnerships with retailers and platforms including Shopify, Walmart and Best Buy, giving its assistant access to shopping experiences outside its own ecosystem.
The competing approaches highlight a growing divide in online retail. Amazon wants customers to use its own assistant within its marketplace, while Meta is seeking to build an AI service that can interact with multiple retailers.
For Amazon, the challenge is not simply attracting more people to Alexa for Shopping. It is ensuring that AI-driven transactions continue to happen within its own platform, where the company can influence product discovery, customer relationships and advertising revenue.
The 400 million-user milestone suggests the assistant has gained substantial reach. Whether that translates into sustained growth in retail sales, however, will depend on how customers use the technology and how quickly competing AI agents reshape online shopping.
